DiffServ architecture has been widely adopted for the provision of QoS over the Internet. This makes the full understanding of its operation imperative. We believe that only mathematical analysis may have the power of such goal. As the heart of a DiffServ router is the token bucket algorithm, a generic one, with two-colours marking, is to be considered here. A mathematical framework will be first developed for its analysis. Then, assuming an input traffic with Poisson arrivals and Exponential packet lengths, and a memoryless token bucket system, the two types of generated streams will be statistically characterized through their distributions and averages. This analysis will be carried out for two types of buckets, one with infinite size and a second with finite size. It will be shown how the derived equations will allow the prediction of the output traffic streams for given bucket and input traffic stream parameters. The paper will be then complemented by conclusions and suggestions.